Published: Friday, September 5, 2014 at 12:30 p.m.

Last Modified: Thursday, September 4, 2014 at 9:59 p.m.

Ending a seven-year debate over what to do with the former Grey Hosiery Mill, Hendersonville City Council returned from a closed session Thursday night to OK its sale to White Challis Redevelopment.

White Challis' plans to transform the city's last historic industrial building into a mixed-use residential historic center were trumped in 2011 by dreams of a conference center. The conference center idea failed.

White Challis' plans for 34 loft-style apartments resurfaced last year, but took a back seat when the council agreed to give another developer a shot at securing a deal with Wingate University for the site.

That deal also fell through and hopes of the property's redevelopment waned, sparking controversy in a race for open seats on City Council.

A recent appraisal showed the fair market value of the property with its buildings onsite would fall in the range of $230,000 to $600,000, or would come in at about $730,000 for the land stripped of its buildings.

To wash its hands of any possible politics around the fate of the site – with the prospect of historic tax credits fading – the council agreed to give the property to Preservation North Carolina to market, sell and benefit from the sale of the site upon their approval of a project.

After a 12-minute closed session, the council returned to open session for a motion from Councilman Steve Caraker.

“Madame mayor, I move that City Council recommend that Preservation North Carolina sell the Grey Hosiery Mill to White Challis HD Investors LLC and Investors Realty Group, or any combination of the above, for the sum of $100,000 with the understanding that the sale will not take place until the White Challis group has performed the necessary due diligence on the property,” Caraker said.

The motion passed unanimously.

Proceeds from the sale will benefit Preservation North Carolina, reputed for successfully taking historic parcels threatened by demolition or disuse and connecting them with developers who protect the site's historical integrity.

The 1915 Grey Hosiery Mill has fallen into disrepair after a quarter-century of neglect. The historic property has been under the city's ownership since the 1980s and over the years has been envisioned as a conference center, a center for the arts and a marketplace, but those plans faltered.

Hoping the improving economy and passage of time might lead to some new ideas, the city sent out another request for proposals of the mill's redevelopment in February 2013.

Jack White and Chris Challis of White Challis Redevelopment Company LLC proposed to renovate the old mill into a mixed-use residential historic center with 34 loft-style apartments. The project was coined “Hendersonville Millworks” and was the vision of local developer James Hall with Investors Realty Group of Hendersonville.

Hall envisioned the apartments ranging in size from 500 to 1,300 square feet, including up to four “flex-space” units on the site to accommodate compatible commercial uses dependent on market demand.

White Challis planned to add four new "rowhouse" units along Fourth Avenue to "mimic the architectural style of the historic mill," with front porches and rooftop gardens. Last year, the firm proposed that construction could be completed in five years and Hall estimated that the project could bring the city a minimum of $35,000 a year in real estate taxes.

Caraker estimates work on the project could start next spring.

“I'm just glad that we're finally moving the issue on,” Caraker said, after the vote. “We'll see what happens, and we're hoping for the best.”

Rezoning approved

City Council Thursday night also green-lighted the rezoning of two properties – one for a duplex and the other for the expansion of a 43-year-old business whose growth has maxed out their space.

John and Pat Shepherd asked the city to rezone their property, which houses Pat's School of Dance at 1256 N. Main St., to allow them to expand and offer better hours of operation to their clients. With class times vying for a limited space at the studio, John Shepherd said there are days when they don't get out until 9:30 or 10 p.m.

John Shepherd said they plan to add about 1,000 square feet on to their current 3,800-square-foot structure.

The Shepherds asked the city to rezone the 1.09-acre parcel from high-density residential to neighborhood commercial to clear them for renovation.

Several supporters spoke in favor of the request and offered high praise for Pat's School of Dance, calling it a “significant player in the cultural landscape” of Hendersonville. Only one supporter expressed concern of a “precedent” might be set for neighboring parcels, asking the city to consider putting a special use limitation on the land to deter the encroachment of commerce.

The special use requirement would delay the expansion project by at least three months, according to city Planning Director Sue Anderson.

“I was very much hoping to start some type of project with the hopes of being through in time for January,” Pat Shepherd said. “I just need to add a bigger studio. Not in my wildest dreams did I ever think that I would have 40 kids in one number. We're rehearsing in a 25-foot-by-40-foot space right now. It's really small and I was just hoping to get it started.”

On a motion by Caraker, the council agreed unanimously to approve the rezoning.

City Council also voted unanimously to approve a request from Ben Campen, who asked that his half-acre lot at the corner of Brevard Road and Westbrook Road be rezoned from low-density residential to medium-density residential. The new zoning classification will allow for a duplex on the site.

In other action, City Council:

-Approved the use of Berkeley Park for the fourth annual Mad Mountain Mud Run set for May 29-30 to benefit Hands On! A Child's Gallery.

-Heard an update from City Manager John Connet, who said that if the city's annual privilege license revenue of $385,000 is lost and not recovered from the state, the city may have to look at raising taxes, cutting back expenditures, limiting departments and postponing capital projects.

<p>Ending a seven-year debate over what to do with the former Grey Hosiery Mill, Hendersonville City Council returned from a closed session Thursday night to OK its sale to White Challis Redevelopment.</p><p>White Challis' plans to transform the city's last historic industrial building into a mixed-use residential historic center were trumped in 2011 by dreams of a conference center. The conference center idea failed.</p><p>White Challis' plans for 34 loft-style apartments resurfaced last year, but took a back seat when the council agreed to give another developer a shot at securing a deal with Wingate University for the site.</p><p>That deal also fell through and hopes of the property's redevelopment waned, sparking controversy in a race for open seats on City Council.</p><p>A recent appraisal showed the fair market value of the property with its buildings onsite would fall in the range of $230,000 to $600,000, or would come in at about $730,000 for the land stripped of its buildings.</p><p>To wash its hands of any possible politics around the fate of the site – with the prospect of historic tax credits fading – the council agreed to give the property to Preservation North Carolina to market, sell and benefit from the sale of the site upon their approval of a project.</p><p>After a 12-minute closed session, the council returned to open session for a motion from Councilman Steve Caraker.</p><p>“Madame mayor, I move that City Council recommend that Preservation North Carolina sell the Grey Hosiery Mill to White Challis HD Investors LLC and Investors Realty Group, or any combination of the above, for the sum of $100,000 with the understanding that the sale will not take place until the White Challis group has performed the necessary due diligence on the property,” Caraker said.</p><p>The motion passed unanimously.</p><p>Proceeds from the sale will benefit Preservation North Carolina, reputed for successfully taking historic parcels threatened by demolition or disuse and connecting them with developers who protect the site's historical integrity.</p><p>The 1915 Grey Hosiery Mill has fallen into disrepair after a quarter-century of neglect. The historic property has been under the city's ownership since the 1980s and over the years has been envisioned as a conference center, a center for the arts and a marketplace, but those plans faltered.</p><p>Hoping the improving economy and passage of time might lead to some new ideas, the city sent out another request for proposals of the mill's redevelopment in February 2013.</p><p>Jack White and Chris Challis of White Challis Redevelopment Company LLC proposed to renovate the old mill into a mixed-use residential historic center with 34 loft-style apartments. The project was coined “Hendersonville Millworks” and was the vision of local developer James Hall with Investors Realty Group of Hendersonville.</p><p>Hall envisioned the apartments ranging in size from 500 to 1,300 square feet, including up to four “flex-space” units on the site to accommodate compatible commercial uses dependent on market demand.</p><p>White Challis planned to add four new "rowhouse" units along Fourth Avenue to "mimic the architectural style of the historic mill," with front porches and rooftop gardens. Last year, the firm proposed that construction could be completed in five years and Hall estimated that the project could bring the city a minimum of $35,000 a year in real estate taxes.</p><p>Caraker estimates work on the project could start next spring.</p><p>“I'm just glad that we're finally moving the issue on,” Caraker said, after the vote. “We'll see what happens, and we're hoping for the best.”</p><p><strong>Rezoning approved</strong></p><p></p><p>City Council Thursday night also green-lighted the rezoning of two properties – one for a duplex and the other for the expansion of a 43-year-old business whose growth has maxed out their space.</p><p>John and Pat Shepherd asked the city to rezone their property, which houses Pat's School of Dance at 1256 N. Main St., to allow them to expand and offer better hours of operation to their clients. With class times vying for a limited space at the studio, John Shepherd said there are days when they don't get out until 9:30 or 10 p.m.</p><p>John Shepherd said they plan to add about 1,000 square feet on to their current 3,800-square-foot structure.</p><p>The Shepherds asked the city to rezone the 1.09-acre parcel from high-density residential to neighborhood commercial to clear them for renovation.</p><p>Several supporters spoke in favor of the request and offered high praise for Pat's School of Dance, calling it a “significant player in the cultural landscape” of Hendersonville. Only one supporter expressed concern of a “precedent” might be set for neighboring parcels, asking the city to consider putting a special use limitation on the land to deter the encroachment of commerce.</p><p>The special use requirement would delay the expansion project by at least three months, according to city Planning Director Sue Anderson.</p><p>“I was very much hoping to start some type of project with the hopes of being through in time for January,” Pat Shepherd said. “I just need to add a bigger studio. Not in my wildest dreams did I ever think that I would have 40 kids in one number. We're rehearsing in a 25-foot-by-40-foot space right now. It's really small and I was just hoping to get it started.”</p><p>On a motion by Caraker, the council agreed unanimously to approve the rezoning.</p><p>City Council also voted unanimously to approve a request from Ben Campen, who asked that his half-acre lot at the corner of Brevard Road and Westbrook Road be rezoned from low-density residential to medium-density residential. The new zoning classification will allow for a duplex on the site.</p><p><strong>In other action, City Council:</strong></p><p>-Approved the use of Berkeley Park for the fourth annual Mad Mountain Mud Run set for May 29-30 to benefit Hands On! A Child's Gallery.</p><p>-Heard an update from City Manager John Connet, who said that if the city's annual privilege license revenue of $385,000 is lost and not recovered from the state, the city may have to look at raising taxes, cutting back expenditures, limiting departments and postponing capital projects.</p><p>___</p><p>Reach Weaver at emily.weaver@blueridgenow.com or 828-694-7867.</p><p>___</p><p>Follow Emily Weaver on Twitter at https://twitter.com/EmilyWORDWeaver.</p>